Russia advocates blockchain technology

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Europe

02:04

Russia is showing a keen interest in developing blockchain technologies.

Sberbank, a state-owned Russian banking and financial services company has successfully completed its first commercial bond transaction using blockchain technology, after Russian President Vladimir Putin called on Russian businesses to embrace and develop digital technologies.

“We need to build our own digital platforms, compatible with the global information space. Active introduction of digital technologies and platforms will allow us to consistently increase the transparency of our economy,” said Putin.

Earlier this year, Sberbank opened a block-laboratory for researching the latest technologies. Working with start-ups and various associations, the lab plans to popularize the blockchain.

Analysts say that many Russian businesses have been ready for a long time for digital innovations but lack the legislative support.

VCG Photo

“We think that all digital operations have to be controlled by the Central Bank. New terms and definitions of cryptocurrencies need to be entered into the Civil Code as payment methods,” said Yuriy Pripachkin, president of the Russian Association of Cryptocurrencies and Blockchain.

Actually, authorities in Russia have been suspicious of virtual money. However, with the new government’s push for a lead in this area, a deputy prime minister for digital economy has been set up in the new government to oversee the industry.

Russia’s lower house of parliament, the State Duma, is now debating a new bill which aims to regulate the possession and creation of cryptocurrencies in Russia. Despite this, the debate is likely to last for some time and needs the agreement of the Central Bank and other governing bodies.

Nevertheless, it's only with the legislative support in place that Russian businesses can continue to develop Russia's digital sector.